Sterling Infrastructure, Inc. · NASDAQ:STRL
Sterling Infrastructure — Sterling Construction — 5th Annual D.A. Davidson & Co. Engineering & Construction Conference (September 2006)
17 slides from Sterling Infrastructure's conference presentation, Sep 21, 2006
Slide 1: 5th Annual D.A. Davidson & Co. Engineering & Construction Conference
5th Annual D.A. Davidson & Co. Engineering & Construction Conference September 21, 2006 NasdaqGS: STRL
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes certain statements that fall within the definition of "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, (including the risk that an apparent low bi
Slide 3: Company Profile
Company Profile Headquartered in Houston, Texas with operations also located in San Antonio, Dallas/Ft. Worth and Austin Transportation Bridges, roads, and highways Light rail Toll roads Water and wastewater Large diameter water systems Sanitary sewers Storm sewers and flood control Self-perform 70%
Slide 4: Key Investment Considerations
Key Investment Considerations Strong growth in backlog, revenues and earnings Significant cash generation and industry-leading return on equity A leading heavy civil construction firm with a 51-year track record of operations Experienced management team heavily invested in Sterling Transportation ma
Slide 5: Transportation Market is Strong and Well Funded
* Source - Department of Commerce Transportation Market is Strong and Well Funded The SAFETEA-LU bill increases transportation spending by 38%, to $286 billion from 2005-2009 Texas allocation is $14.5 billion, a 37% increase New Texas Highway Funding Options Comprehensive Development Agreements Pass
Slide 6: Continued Long-Term Investment in Water Infrastructure
Continued Long-Term Investment in Water Infrastructure Water and wastewater form a $27 billion national market which is expected to grow by 17.5% in 2006 Growth driven by substantial infrastructure needs Flood control and subsidence issues New drinking water supplies Population growth and system rep
Slide 7: Sterling Provides Comprehensive Civil Construction Services
Sterling Provides Comprehensive Civil Construction Services Roads Toll Roads Bridges Highways Light Rail Water supply systems Storm sewer replacement Flood control Wastewater systems Transportation Water NEW CONSTRUCTION and RECONSTRUCTION NEW CONSTRUCTION and RECONSTRUCTION NEW CONSTRUCTION and REC
Slide 8: Sterling's Competitive Advantages
Sterling's Competitive Advantages Comprehensive civil construction capabilities Size and scale to complete large projects Experienced and loyal base of employees Versatile fleet of Company-owned equipment Substantial equity ownership by senior and mid-level management 51-year history of managing con
Slide 9: Strong and Growing Texas Markets
Strong and Growing Texas Markets Texas is the second largest state in the country with 22.5 million people (8% of the country's population) Houston - 4th largest city San Antonio - 8th largest city Dallas - 9th largest city Austin - 16th largest city Continued strong population growth expected (2.6%
Slide 10: Substantial Growth Opportunities
Substantial Growth Opportunities Maintain leadership position in attractive growth markets Expand construction capabilities Services such as drill shaft installation Products such as pre-cast concrete products Materials such as recycled concrete and asphalt Expand operations into complementary marke
Slide 11: Texas Opportunities
Texas Opportunities Fort Worth Dallas Austin Houston San Antonio Corpus Christi Christi Christi Trans-Texas Corridor
Slide 12: Geographic Expansion
Company, Inc. Geographic Expansion
Slide 13: Financial Highlights
Financial Highlights* Growth 18.2% compound annual growth rate in revenue over last 20 years 83% year-over-year increase in diluted EPS (six months ended June 30, 2006) Returns 27.5% return on equity, on average, over past four fiscal years Financial Stability 22.9% long-term debt to total capitaliz
Slide 14: Financial Results
Financial Results* * Continuing Operations. Guidance Guidance $ million $ million $ million
Slide 15: Construction Revenues & Backlog
Construction Revenues & Backlog* * Midpoint revenue guidance; Backlog at 6/30/06 $ million
Slide 16: Backlog Continues to Grow
Backlog Continues to Grow Diverse Backlog 61 projects 13 owners $10.6 million average original project size Significant recent awards $90 million (Kingwood area) in Aug. 2006 $39 million (Sugarland) in April 2006 $49 million (Dallas) in March 2006 2006 2007 2008 June 30, 2006 Backlog at $374 million
Slide 17: Financial Strength
Financial Strength Peer group is comprised of Perini Corp., Fluor Corp, Jacobs Engineering, Shaw Group, Granite Construction, and Washington Group International (in $000s) At 12/31/05 At 6/30/06 Peer Group (1) Cash and short term investments $ 22,267 $ 36,483 Other current assets 51,360 63,480 Total